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World Markets Rise on News of US Debt Deal

Employees of a foreign exchange firm in Tokyo monitor screens with a television news reports that President Barack Obama announced a US debt limit deal, August 1, 2011
Employees of a foreign exchange firm in Tokyo monitor screens with a television news reports that President Barack Obama announced a US debt limit deal, August 1, 2011
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Global financial markets Monday welcomed the deal in Washington to avoid a debt default by the government of the world's largest economy.  

Most U.S., Asian and European stock markets moved higher after U.S. President Barack Obama and congressional leaders made an agreement to increase the legal limit on borrowing and cut government spending.

At one point the price of gold dropped more than $15. The precious metal is traditionally a refuge for investors worried about the economy, so the price drop may be linked to an easing of economic tensions.

In morning trading, the price of oil rose nearly three percent, the largest gain in two months, as investors bet the agreement would help economic growth and boost energy demand and prices.

But many markets gave up their gains later Monday after a separate economic report showed U.S. manufacturing grew at the slowest pace in two years.

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World Currencies

EUR
USD
0.7661
JPY
USD
99.249
GBP
USD
0.6510
CAD
USD
1.0118
INR
USD
54.524

Rates may not be current.